State Trading makes profits

Sstar

Vice President - Equity Analytics

Posts : 1407Equity Stars : 7324Reputation : 51Join date : 2011-11-01

The State Trading (General)Corporation (STC) which made losses in the last few years has made a profit of Rs 107 million as at October 31 this year. STC Chairman Pradeep Gunawardena told Daily News Business that this profit is after paying all past liabilities which ran into Rs 33 million.

The Corporation had been running at a loss for seven years until the current management took it over in June 2008, and they were able to turnaround the company within a short period of one year.

“We have been able to regain everything that we had lost including the brands, image and even agents. Now we are the agent for quality products such as AA paper, Yokohama tyres, Exide batteries and HP computers making over Rs 150 million worth of sales monthly compared to only Rs 20 million during the previous ten years. This is a 116 percent growth,” he said.

Referring to other achievements in the recent past he said the Upahara package introduced by the STC to government servants was able to bring down the call charges to Rs 3 and the royalty received from that was a great strength.

The Corporation was able to get an income through TVS motorcycle deals without investing any money.

It was able to increase the number of employees from 165 to 300 including professionals in order to increase productivity. With all these achievements STC is now in a position to compete with the private sector.

Asked how it was made possible Gunawardena said it was a huge challenge and even the COPE committee commended this. Implementation of creative business models,tapping all untapped areas and proper management of human resources together with the dedication of all employees helped the STC to become a profit making institute.

The employees are getting bonuses after 12 years, with several other benefits such as business loans, attendance bonus and sales incentives making them highly motivated. Asked about future plans he said still there are a lot of shortcomings. However the Corporation is planning to be the leader in the IT trade with HP Computers with a target of Rs 100 million and also undertake government procurement initiatives.